Hyundai is a big car company that wants to sell more electric cars in the US. They have a special plan to give people $7,500 off when they buy one of their cars. This way, they can compete with another car company called Tesla, which still gets a discount from the government for its electric cars. Read from source...

- The article title is misleading. It implies that Hyundai is seeking to bypass the US tax credit barriers with a cash incentive of $7,500 for EV buyers, but this is not accurate. The cash incentive is actually offered by Kia, another subsidiary of Hyundai Motor Group, and it is separate from the federal EV tax credit that Hyundai may or may not qualify for depending on its US manufacturing capacity.
- The article does not provide any evidence or data to support the claim that Hyundai's best-selling Ioniq 5 SUV or Kia's EV6 are facing competition from Tesla's Model Y, which remains eligible for the federal tax credit. The comparison is based on subjective factors such as brand reputation, consumer preferences, and market share, which may vary across different regions and segments of the EV market.
- The article fails to mention that Hyundai has already announced plans to build a $5.5 billion EV plant in Georgia, with an annual production capacity of 300,000 units by 2025. This means that Hyundai may soon qualify for the federal tax credit, depending on the timing and location of its US manufacturing operations. The article also ignores the fact that Hyundai has been investing heavily in R&D and innovation in the EV sector, with a focus on battery technology, charging infrastructure, and software solutions. These efforts may enhance Hyundai's competitive advantage in the long run, despite the current challenges it faces from the tax credit restrictions.

1. Buy Hyundai Motor (OTC:HYMTF) stock as a long-term hold with a target price of $75 per share, an 86% upside from the current market price of $40.53. The company is well-positioned to benefit from the growing EV market and has strong brand recognition in the US. Hyundai's strategy to bypass the federal tax credit barriers with cash incentives will likely attract more buyers and increase market share.
2. Sell Tesla (NASDAQ:TSLA) stock as a short-term trade with a target price of $600 per share, a 15% downside from the current market price of $708.49. The company faces increased competition from Hyundai and other EV manufacturers that offer cash incentives to consumers, which may erode Tesla's pricing power and profit margins. Additionally, Tesla is vulnerable to the global chip shortage and supply chain disruptions, which could negatively impact its production and delivery capabilities.
3. Invest in Kia (OTC:KIMTF) stock as a medium-term hold with a target price of $45 per share, a 62% upside from the current market price of $28.07. Kia is Hyundai's sister company and will benefit from the same cash incentives strategy to boost EV sales in the US. Kia has a strong product lineup with the EV6, which is comparable to Tesla's Model Y in terms of performance and features. Kia's stock price is undervalued due to its recent recall issues and operational challenges, but it offers significant growth potential as an EV leader.